Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago,

User Stats

18
Posts
10
Votes
Payton Ball
  • Rental Property Investor
  • Charlotte, NC
10
Votes |
18
Posts

Home Relocation - NO RENOVATION NEEDED

Payton Ball
  • Rental Property Investor
  • Charlotte, NC
Posted

For anyone experienced in buying a home that needs to be moved to a new lot!

It’s a 3 BR 2 BA at 1700 sqft, bought in the middle of a neighborhood where million dollar homes are popping up for 400k.  My assumption was that the owner has the intention to tear it down and build from the ground up. Then he/she must have thought, instead of paying to tear it down, lets see if we can get cash for the property. The home is listed at 60k, and I would be responsible for the moving etc.

Called the agent and he confirmed what I thought. He said that they would either TEAR IT DOWN OR DONATE IT IF IT DIDN'T SELL, which makes me think I could get it even lower if I played my cards right. I found a lot for sale for 35k in an area where the ARV (or in this case the relocation) value is easily 230k.. probably 240k+. This is preliminary... could probably find an even better lot at higher cost with an even higher resale value.

I’m doing math and trying to estimate foundation costs, plumbing, electricity, transporting the actual home, etc. and I’m getting about 120k as a max…. does that seem low? And say I didn’t negotiate the price down on the home at all.. that’s still 50k profit after holding costs in the middle… pretty great return.

 The last piece is lenders, because I’m sure they treat these scenarios differently. Sorry for the long winded message! Was curious on everyones perspective.  Would require a lot more legwork than a flip, but the potential return seems too good to be true?